South Korean police arrested Koo Bon-hyun, an LG family member, over suspected stock manipulation and embezzlement in a case involving alleged gains of 14.5 billion won ($10.9 million) tied to a listed company.
The Korea Herald reported Friday, citing the Seoul Metropolitan Police Agency (SMPA), that Koo was detained when he arrived in South Korea on Monday. Police formally arrested him Wednesday under a court-issued warrant. Police suspect him of violations of South Korea's Capital Markets Act and accuse him of embezzlement and breach of trust.
Police put the suspected proceeds at 14.5 billion won ($10.9 million), tied to alleged false disclosures about a KOSDAQ-listed company Koo acquired without investing capital, the report said. A separate embezzlement allegation involves 4.6 billion won taken from the company; some of the money was allegedly used for entertainment expenses, according to the SMPA account cited by the newspaper.
Koo left South Korea for the Netherlands in 2018 amid the suspicions. Police obtained a detention warrant in 2019 and then sought an Interpol Red Notice. Cambodia apprehended Koo in September, and he was repatriated to South Korea this week, The Korea Herald reported.
Koo is a nephew of the late Koo Cha-kyung, LG Group's honorary chairman. He also received a finalized three-year prison sentence in 2012 in a separate stock-manipulation case.
